mcb39

Well, add me to the "cast of characters" as I sit here computing with a lens in one side of my glasses and nothing in the other side. Next surgery scheduled for Feb 3. This one has gone so well, just a bit longer adjustment time than I expected. Could read fine print the first day though. Distance vision was a bit fuzzy for a while, but that is coming around too. I can see a big difference between yesterday and today. If your Dr. recommends it, so do I.

Sure glad that you came back. Now I don't have to remove you from my "friends" list. Hope everything has gone and is going well in your personal life.

Aren't you just as busy as he is, or even busier? Have him come to your office. He is the one who wants the paperwork and he should be paying for it before he picks it up. I still have ten months of bookkeeping for a client who died in Dec, 2008. His widow has been here a couple of times for consultations, but she has never picked up that bookkeeping or (as far as I know) filed taxes for 2008. If she calls now, she will be asked to pick up what I have and take it elsewhere. Sometimes it is better to lose or fire a client than to try and deal with him.

A full exemption may be claimed for a child born at any time during the tax year, so long as the child lives momentarily and the birth isrecognized as a "live" birth. Another example: A child is born on Dec 31, 2009, and dies in January 2010. A full exemption is allowed for the child in both years. I have never heard of a child being born on 1/1 being able to be claimed on the prior year return. However, I have had children born on Dec 31, who are able to be claimed for the entire year. My two quotes above were taken from the 2010 US Master Tax Guide, Paragraphs 137A and 149

We added my HP2035 to Wireless laptop which has Windows 7. Had to download driver for Windows 7 64 bit from HP website. Worked immediately. At the same time, it works with my XP desktop with original driver.

Wisconsin is a Community Property State but does not have that requirement.........YET! Yes, any of those are possible depending on the circumstances....and what the market can bear. I try to keep things as simple and beneficial as possible for my clients. We are in a highly economically distressed area and I have very, very few clients with above average incomes. I would add that this economic distress did not just develop this past year, but has been progressing for at least the past seven or eight years. I only have a handful of clients who are not struggling to some extent.

They are supposed to be setting up a search page on the IRS website, where we can check to see if the taxpayers received the $250; just like we were able to check on the Recovery Rebate Credit last year. I have not checked to see if it is there, but that is what the IRS speakers told us in school last fall.

It is your answer. I have a client who has been renting, cannot get a bank loan at this point; but owner is willing to sell to him on a land contract. A land contract, if properly executed, is a legal and binding vehicle. This client is going ahead with the purchase (per land contract) and does qualify for the first-time homebuyers credit. I have another client who has purchased two rental properties on land contracts. Of course, these do not qualify for credits; but they illustrate that he did purchase the properties on the date of the lc and the seller is merely acting as the "banker". He has since been able to get conventional financing on one of the properties because he had built enough equity into it. Often, executors of land contracts will charge a much higher rate of interest because of the risk factor. Many years ago, we purchased our first home in this manner. We had a land contract with the seller for two years; at which time we were obligated to get conventional bank financing and pay him off. We were responsible for all upkeep, taxes, utilities, etc.; and defaulting would only have resulted in our losing our original (small) down payment and the equity we had built. I have seen nothing in the IRS regs that tells me that this type of purchase is not a legal first-time homebuyer purchase.

If the taxpayer obtains the benefits and burdens of ownership in a seller-financing arrangement, the taxpayer can claim the credit even though the seller retains legal title. (e.g. a contract for deed, installment sales contract, or lang-term land contract) This is taken from The National Income Tax Workbook for 2009 for Wisconsin. In addition, remember that the credit is based on the date of purchase and not the date of occupancy except when the residence is constructed by the taxpayer. I would say that this is a definite "No".

I don't think you have any choice unless you hold it until this distressed RE market turns around (if ever). It is what it is. You cannot just put a price on it. If you have proof of FMV on the date of death and choose to sell it at a loss, wouldn't the IRS have to accept that you have a LT carryover loss for however many years it takes?

Quickfinder; page 7-15, as well as 1040 Express Answers state that "the basis of an inherited house equals FMV at the time of decedent's death, or the alternate valuation date, if used." You would probably use an alternate valuation date if you had done any improvements (increase) or something caused the house to lose value (decrease). Also, remember that inherited property is always considered to have been held long term. You could also realize a Capital Loss. What about the valuation on the tax bill for 2009; which should have arrived by now. They always state both the Assed Value and the Fair Market Value. I don't think you need to be overly concerned here unless you are realizing a very large gain or loss. IMO

I echo Deb to a T. I also thank you, Jainen, for your support of us "little guys".

I have used both options and they both work well. Good question, though, to bring this feature to the attention of others.

I put them on 2 Schedule Cs with the income and expenses split. This way both spouses get the advantage of SE Tax which goes to SS; and here in Wisconsin they benefit by the Married Couple Credit as they both have income.

That pretty much describes my business and I would venture to guess that would include many of the other preparers and posters on this board.

I don't believe that anyone here is slurring the ethics of professionals on this board or elsewhere. Some of us may have reacted in self-defense because of our experience. Nobody is chastising the education or expertise of Attorneys, CPAs and EAs. The fact is that some of these professionals are NOT automatically qualified to prepare tax returns because they chose to move on into other fields and not stay current with tax laws. I, myself, have some CPAs as clients. They would not begin to assume that they know more about tax law than I do. As for attorneys, most of us have had tax experiences with them a time or two. It all depends on whether they have stayed current with tax law; and many of them have not. As for EA certification, my belief is that practitioners who have pursued this title are to be admired and have enhanced their Tax Preparer credibility by taking and passing this difficult test. I have considered it myself over the years and am not afraid of it, but because of the distance I would have to travel and my age, I am now out of that loop. My apologies to anyone who has taken offense, and thanks to those who understand the experience issue.

This is exactly what I was going to post. Also, in regard to Gail's post; if one partner contributes the money and the other partner does the work, can't it still be a 50/50 Partnership? There are too many things that we don't KNOW about this setup.

I was just curious and certainly not suggesting any disapproval. I, personally, name mine "Final" to differentiate between the extension e-file and the return e-file.

1. Ironically, I did not receive the letter last year. It kind of makes you feel like someone is looking over your shoulder and I have honestly NEVER filed a return without Information forms in hand. 2. I did take slight offense at this statement: exempting attorneys, certified public accountants and enrolled agents). How does one measure one of the above who, perhaps, has rarely, if ever, prepared an income tax return........against 30 plus years of dedicated work and experience? :huh:

Received the 21st Edition of the Wisconsin Tax Guide on Saturday and Quickfinder books today. So, looks like I no longer have an excuse to procrastinate. All the research materials are here.......time to load and update the program.

Starting today, the IRS is sending letters to approximately 10,000 paid preparers who have large volumes of specific types of tax returns where the IRS typically sees frequent errors. I received a letter today in regard to preparing tax returns without the form S2, W2G or 1099R in hand befoe filing. Interesting. They can visit me if they want to. I will try to find an empty chair. Research materials are coming in so fast, organizers are being prepared, etc. Even the UPS man today said, "It's Tax Time1".

I update through the program for whichever computer I am working on at the time. However, I do ALL my e-filing from only the desktop. This means working on and transporting a client file back and forth on a jump drive. Works great when I am out of town. Have never attempted to e-file even an extension from the laptop. Am curious as to why you would want to delete the files in the first place. They take up such a small portion of the harddrive.

Best of luck to your husband,KC. He will be in my thoughts. It really was a breeze, but, of course, there are minimal risks with any surgery. Think Positive and trust in the good judgement of your doctor. I SO wanted to be able to see better. My eyes were interfering with my work. I have my second scheduled for Feb 3; after all the checkups are over for the first one. My husband has now decided that he wants his other eye done also. My worst problem now is that I can see extremely well with one eye and not the other. Am going for broke and looking forward to a great and productive 2010. Perhaps you should change the title for this thread. I don't see a way that I can do it. We have gotten way off the subject of the 1040 Express Answers. Thanks!

Thanks to all of you for your thoughts and concern. The surgery went beautifully (just as Taxbilly said it would). I can see better by the hour and can see the computer better without glasses than with. It is amazing how bright and beautiful everything is already. I have the second eye scheduled as of this morning. I have worn glasses, at least for reading, since I was 2. I still have my first little wire rimmed glasses, which would be in style now. The nurse told us this morning that there are so many people who refuse to have this surgery. So, if any of you out there are debating the issue, I highly recommend it. My husband and I got there at 1:00 and were home by 3:30 and they had to switch the O R around in between because we were having opposite eyes done. Hubby was only going to have one done, but as the day progressed today, he changed his mind and is going for the second eye also. Thanks again to all my family here who care. You are an awesome group.

That is what I am having done and am SO looking forward to it. My husband is having one eye done today and I am having one. He doesn't need the second one, but I will be going back for that as soon as they allow me. Thanks to all of you for the words of encouragement and good wishes. It means so very much to me. And thanks to Taxbilly for the little pep talk. Everyone says that I won,t believe how much I was NOT seeing.